Record Achievements, Hazem Hijazi leads alBaraka to top Islamic banks in financing

alBaraka Bank's financing sector is experiencing strong expansion that has led to unprecedented growth rates, the highest since the bank entered the Egyptian market, enabling it to top the First Bank list of the fastest growing banks operating in the Egyptian banking sector in total customer financing for two consecutive years.

This success is due to the efforts of Hazem Hijazi, CEO and Vice Chairman of the Bank and his team, who have worked to provide many privileges and benefits to customers through various products, supporting Egypt's major corporates through syndicated financing, as well as developing technological infrastructure and focusing on digital banking.

The efforts of Hijazi resulted in the total Musharaka, Mudaraba and Murabaha transactions with customers of Al Baraka Bank from EGP 23.27 bn by the end of September 2021 to EGP 49.1 bn by the end of March, with a growth rate of 111% and an increase of EGP 25.8 bn.

The strong growth rates achieved by Al Baraka Bank since the arrival of Hazem Hijazi led the Bank to take the lead in Islamic banks in rapidly growing its financing portfolio from the end of 2021 to date, making Al Baraka Bank the first to receive the customers of Islamic financing in Egypt during this period.

The Bank's strong performance in the financing portfolio is due to the rises achieved in the retail banking sector, where its portfolio of retail financing increased by 287.3% during the period under analysis, reaching EGP 9.2 bn by the end of the first quarter of this year, compared to EGP 2.4 bn by the end of September 2021, with an increase of EGP 6.8 bn.

The expansion of corporate financing also played a role, with its corporate portfolio rising by 91%, to EGP 39.9 bn by the end of March 2024, up from EGP 20.9 bn by the end of the third quarter of 2021, with an increase of over EGP 19 bn.

With the support of the Bank's direct financing rising to EGP 34.2 bn by the end of the first quarter of this year, compared to EGP 17.9 bn by the end of September 2021, with a growth of 91.5% and an increase of EGP 16.4 bn.

The Bank’s syndicated financing increased from EGP 3 bn by the end of the third quarter of 2021, to EGP 5.7 bn by the end of March 2024, with growth of 89.1% and an increase of EGP 2.7 bn, thanks to the Bank's signing of several funding cooperation protocols. Most notably, he participated in an alliance with 6 major banks to provide multipurpose Islamic co-financing worth EGP 2 bn for Al-Elsewedy Electric Group In order to finance the activities of the affiliates of the Group, including the requirements of working capital for customer support contracts for the benefit of the Company and the expansion of domestic and international markets in 2022.

In February 2024, Al Baraka Bank participated in the largest co- financing deal compliant with Islamic Shari'a principles in Egypt. The deal was valued at about EGP 5.5 bn. It was for Giza Systems and VAS Integrated Solutions, with the aim of refinancing existing facilities on better terms and at lower financing costs.

In addition, he participated as a major organizer in Islamic syndicated financing totalling EGP 1.65 bn for Kharafi National, with a share of EGP 300 mn.

Hazim Hejazi worked to enhance the employment and development of resources by setting high targets for growth, and managed to reach the banking sector average, where the rate of deposit employment for financing at Al Baraka Bank increased to 52.2% by the end of March 2024, compared to 33.93% by the end of the third quarter of 2021.

Despite the remarkable rise in its financing volume and the rise in the rate of employment of deposits for financing to record levels, the Bank was able to reduce its distress rate to 3.82% by the end of March, compared to 4.7% by the end of September 2021.

Hazem Hejazi's experience has won many international praises, as evidenced by the many awards, most notably the Fastest Growing Islamic Bank Award in Egypt for 2023, from International Business and International Finance.

The bank also won the best structured finance deal in Egypt for the year 2023 from “Global Brands”, and listed in Forbes' list of Egypt's Top 50 Companies in 2023.

Al Baraka also received two awards from EMEA FINANCE, the first award for best structure, and the second as best financing in local currency presented for its participation in the syndicated financing provided to Evergrow Fertilizers Company, and also received the award of the best Islamic Bank in Egypt from the World Union of Arab Bankers in 2023. While its most recent award, the Best Restructuring Syndicated Finance Award from Emma Finance Magazine.

To view Hazem Hejazi's Profile and his most prominent positions, Click More